Trading Scenario: As we discussed in my earlier post on AUDUSD about it loosing momentum, was proved to be right.
We mentioned 0.9230 as a key resistance level, AUDUSD made a high of 0.9221 and reversed off from that level and currently trading just below 0.9100 key resistance level and holding support at 0.9080 now.
If we look into more details, AUDUSD has lost its path from bullish channel and broke below that. This suggests that AUDUSD might face a downward correction. We have our weekly trend reversal level at 0.9040, breach of that level will push this pair further down in coming days. Daily close yesterday was a hanging man which also signifies potential downward movement.
Today 0.9180 support will play a key role in terms of direction. If AUDUSD hold 0.9080 support level and clears 0.9100, doors will open up targeting 0.9125, 0.9160, 0.9200.
If AUDUSD breaks below 0.9180 support level, AUDUSD could potentially drop to 0.8850 levels, with targets in between at 0.9000, 0.8950, 0.8900, 0.8850
Entry Strategy: Look for bounce at 0.9080 to go long or break below 0.9080 to go short
Trade Suggestion: If price is able to bounce off at 0.9080 support level and clears 0.9100 go long targeting 0.9125, 0.9160, 0.9200. ( This will be Aggressive )
Alternate Trade Suggestion: If price is not able to sustain above 0.9080 and breaks below 0.9080 go short targeting 0.9000, 0.8950, 0.8900, 0.8850
Trend Direction: Bullish
Weekly Trend Reversal Level: 0.8940
Key Support Levels:0.9080, 0.9000, 0.8920, 0.8850, 0.8755
Key Resistance Levels: 0.9100, 0.9125, 0.9160, 0.9186, 0.9226